Question
Jyoti Ltd incurred loss in the current financial
year first half of FY2 6 ; however, it wants to declare interim dividend. What is the maximum rate of dividend it can declare if the dividend declared by Jyoti Ltd in the last 5 years was as follows? FY2 5 – 20% FY2 4 – 19% FY2 3 – 18% FY2 2 – 18% FY 21 – 23%Solution
In case the company has incurred loss during the current financial year up to the end of the quarter immediately preceding the date of declaration of interim dividend, interim dividend shall not be declared at a rate higher than the average dividends declared by the company during immediately preceding 3 financial years.
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